UNIT VI - PREPARING FOR A SALE
Lesson 5:
Identifying and Approaching Potential Customers
Competency/Objective: Identify potential customers and the best method for approaching them.
Study Questions
a.
What sources and methods are used to identify potential customers?
b.
What knowledge of a customer is needed to prepare for a sale?
c.
What factors can influence a customer’s perception of a salesperson?
d.
How does the sales environment affect the approach?
e.
What is appropriate attire for a salesperson, and how does the his or her appearance
affect the sales presentation?
f.
How should a customer be greeted?
What methods are used to identify potential customers?
1. Salesperson’s company
(1)
Sales department
(2)
Research department
(3)
Group of sales representatives
(4)
Other sources within the company
(a)
Credit departments
(b)
Service departments
2. Salesperson’s personal experience
(1)
Personal observations
(a)
Reading local newspapers
(b)
Joining clubs or groups
(c)
Attending community activities or other events that place him or her in
contact with people in the sales territory
(2)
Cold canvassing
(a)
Door-to-door sales
(b)
Passing out business cards or flyers
(3)
Telephone calls or direct mail (information usually comes from some type of
research)
(a)
Telephone - calling prospects and making sales presentations over the
phone
(b)
Direct mail - sending out information about sales, discounts, new
products, or new features
(c)
Faxes - variation on direct mail, faxing out the information
3. Current customers
(1)
Referrals - may make direct referrals to friends, family, or business associates
or give subtle clues
(a)
Endless chain - lists made by customers containing the names of people
they know who may be interested in the product
(b)
Center of influence - person of high standing in the community who is
known to use the product and helps the salesperson obtain prospects
(2)
Customer testimonial - statement from a customer expressing satisfaction with
a product that can be presented to prospective customers to help make a sale
4. Noncompeting salespeople
5. Public sources (e.g., government agencies)
6. Commercial sources
What knowledge of a customer is needed to prepare for a sale?
1.
2.
3.
4.
5.
Who the decision maker is and his or her personality type
Financial standing
Need for the product
Potential volume of sales and longevity of the business relationship
Accessibility of the customer
What factors can influence a customer’s perception of a salesperson?
1. Personal appearance
2. Salesperson’s attitude, expressed through the manner in which he or she speaks,
language used, and tone of voice
3. Nonverbal signals
4. Salesperson’s knowledge of the product, the market, and the company
5. Appearance of trustworthiness and credibility
6. Past experiences with the sales representative’s company, product, or another
salesperson from that company
7. Bias against the sales representative based on his or her age, gender, or race
How does the sales environment affect the approach?
1. Retail
(1)
(2)
(3)
(4)
Emphasize market information about future demand
Take the type of customer into account when determining need
Determine the financial capability of the retailer
Approach the retailer with ideas for promotions or advertisements and make sure
the retailer will participate
2. Wholesale
(1) Provide information about the number of retailers who will carry the product to
indicate demand
(2) Determine the financial capability of the wholesaler
(3) Inform the wholesaler of any discounts
(4) Provide information about delivery and order procedures
3. Processing
(1) Focus on product efficiency and technical support
(2) Determine need
(3) Determine financial ability to make the purchase
4. Direct sales
(1) Focus on the benefits to customer
(2) Identify needs and features of the product that can meet them
(3) Inform the customer of the support he or she will receive from the company
What is appropriate attire for a salesperson, and how does his or her appearance
affect the sales presentation?
1. The salesperson should dress in the same style but a bit better than the customer. Being
underdressed or overdressed gives the impression that the salesperson either is not
prepared to sell to customers in their environment or does not have enough
knowledge of their environment to know what is appropriate.
2. Clothing and jewelry should not be gaudy, flashy, or trendy. The salesperson does not
want them to distract the customer from the presentation.
3. The salesperson should be clean with well-kept hair and nails, and women should wear
moderate makeup.
How should a customer be greeted?
4.
5.
6.
7.
8.
9.
Shake hands.
Address the customer by name.
Make introductions (provide both the salesperson’s and company’s name).
Express appreciation to the customer for taking the time to meet.
State the purpose of the meeting.
Begin to gain information from the customer by asking probing questions.